Contractors are constantly being used to plug gaps in a company’s workforce. Whether it is for maintenance, repairs or installation of new technology; contractors provide an extra hand when needed that can be beneficial depending on the project at hand.
It may seem like there would always need one more person but sometimes less really does equal more because these professionals have specialized skillsets which make them better able than typical staff members do handle certain types tasks without needing too much supervision from managers above them–and this saves both time and money!
What are Contractors?
A contractor is an individual or a company that provides services or labour to another company, organization, or individual. Typically, contractors are hired to complete specific tasks or projects, and they are not considered employees of the company they work for. Contractors are usually paid by the hour but may also be paid a lump sum for a project. Some common examples of contractors include plumbers, electricians, carpenters, and landscapers.
There are many advantages to hiring a contractor instead of an employee. For one, hiring a contractor can be much cheaper because you do not have to provide them with benefits such as health insurance or vacation time. Additionally, contractors can often be more flexible with their schedules, which can be helpful if you have a project that needs to be completed quickly. Finally, if you are not satisfied with a contractor’s work, you can simply choose not to hire them again in the future.
There are also some disadvantages to hiring contractors. One is that you may have less control over them since they are not considered to be employees. Additionally, contractors may not be as invested in your company or project as an employee would be, which could lead to lower quality work. Finally, it can be difficult to find good contractors, and you may have to interview several before finding one that you are happy with.
If you are considering hiring a contractor, it is important to carefully consider the pros and cons before making a decision. You should also make sure to get everything in writing, including the scope of work and the payment schedule. This will help to avoid any misunderstandings or disagreements later on.
What is an example of a Contractor?
A plumber would be an example of a contractor. A plumber is someone who is hired to complete a specific task, such as fixing a leaky pipe and is not considered to be an employee of the company they are working for. Plumbers are usually paid by the hour but may also be paid a lump sum for a project.
An electrician is another example of a contractor. Electricians are hired to complete specific tasks, such as installing new light fixtures or wiring a house. They are not considered to be employees of the company they are working for. Electricians are usually paid by the hour but may also be paid a lump sum for a project.
Difference Between A Contractor And An Employee
The main difference between a contractor and an employee is that a contractor is not considered to be an employee of the company they are working for. Contractors are usually paid by the hour, but they may also be paid a lump sum for a project. Additionally, contractors can often be more flexible with their schedules than employees.
What are the Advantages Of Hiring a Contractor?
There are many advantages to hiring a contractor instead of an employee. For one, hiring a contractor can be much cheaper because you do not have to provide them with benefits such as health insurance or vacation time. Additionally, contractors can often be more flexible with their schedules, which can be helpful if you have a project that needs to be completed quickly. Finally, if you are not satisfied with a contractor’s work, you can simply choose not to hire them again in the future.
Scale Of Contractor Use
The use of contractors is increasing as many companies turn to outside resources to supplement their own staff and expertise. Contractors are often used for information technology projects, maintenance, repairs, installation, construction, demolition and many other jobs. Organisations have increasingly used contractors over recent years rather than employ more full-time employees. This may be to supplement their staff particularly for specialist tasks, or to undertake nonroutine activities. There may also be other reasons for the increased use of contractors:
- Demand for products or services is uncertain.
- Contractors can be used when more flexibility is required.
- Contractors usually supply their own tools and equipment associated with the contract.
- There is no permanent staff available to perform the work.
- The financial overheads and legal employment obligations are lower.
- Most of the costs associated with increasing and reducing employee numbers as product demand varies do not relate to contractors.
- Permanent staff can concentrate on the core business of the organization.
The advantage of the flexibility of contractors in uncertain economic times is the main reason for the increased use of them over recent years. There are, however, some disadvantages in the use of independent contractors. These include:
- Contractors/sub-contractors may cost more than the equivalent daily rate for employing a worker.
- By relying on contractors, the skills of permanent staff are not developed.
- There is less control over contractors than permanently employed staff. This can be a significant problem if the contractor sub-contracts some of the work.
- The control of the contractor and the quality of the work are crucially dependent on the terms of the contract.
Contractor Selection
The selection of the right contractor for a particular job is probably the most important element in ensuring that the risks to the health and safety of everybody involved in the activity and people in the vicinity are reduced as far as possible. Ideally, selection should be made from a list of approved contractors who have demonstrated that they are able to meet the client’s requirements.
The selection of a contractor has to be a balanced judgment with several factors being taken into account. Fortunately, a contractor who works well and meets the client’s requirements in terms of the quality and timeliness of the work is also likely to have a better-than-average health and safety performance. Cost, of course, will have to be part of the judgment but may not indicate which contractor will likely perform best in health and safety terms.
In deciding which contractor should be chosen for a task, the following should be considered:
1. Health and Safety Policy
When selecting a contractor, there are several key factors to consider in order to ensure a safe and successful project. An adequate health and safety policy is one of the most important things to look for. This should include procedures for handling hazardous materials and a plan for dealing with potential accidents or injuries.
2. Liability Insurance
One key factor to consider when selecting contractors is their liability insurance. This will protect you if something goes wrong and you are held liable. Make sure to check with the contractor to see their policy and whether it will cover you in the event of an accident.
3. References and Reviews
It is also important to check references and reviews before selecting a contractor, in order to get a sense of their level of experience and customer satisfaction. By taking the time to research potential contractors, you can help ensure a smooth and successful project.
4. Competency Of Workers
It is important to make sure that the person responsible for the work is competent. This means they should have experience in the type of work you need done and be able to provide references from past clients.
5. Monitor The Level Of Accidents
One of the key factors to consider when selecting a contractor is whether or not they monitor the level of accidents at their worksite. This can give you an indication of how well they manage health and safety risks. By ensuring that accidents are monitored, you can help ensure that your employees are safe while working on the project.
6. Dealing With All Significant Risks
One of the key factors when selecting contractors is their ability to produce a comprehensive method statement that sets out how they will deal with all significant safety risks. This document assures potential clients that the contractor is aware of the risks involved in the project and has taken steps to mitigate them.
7. Safety Arrangements and Procedures
One key factor to consider when selecting contractors is whether they have guidance on health and safety arrangements and procedures to be followed. This is important because it can help ensure that the work undertaken is safe and minimize any risks. If a contractor does not have such guidelines in place, it may be worth considering another company that does.
8. Effective Monitoring Arrangements
Do they have effective monitoring arrangements? By ensuring that the contractor has an effective monitoring system in place, you can be confident that they are adhering to safety regulations and standards. This will help to avoid any potential accidents or injuries on site.
9. Trained & Skilled Staff
Do they use trained and skilled staff who are qualified where appropriate? By ensuring that the contractor has a solid team in place, you can be sure that the job will be completed to a high standard and safely.
10. Health and Safety Reputation
Unfortunately, accidents do happen. But if a contractor has a good reputation in health and safety, it means they’re taking the necessary precautions to prevent them. And that’s exactly the kind of contractor you want to work on your project.
So, when you’re vetting potential contractors, be sure to ask about their health and safety records. It could just be the deciding factor in who you ultimately choose to work with.
11. Past Safety Performance
Can they provide references to check their past health and safety performance? This is a key factor to consider when selecting contractors. Checking references can help ensure that the contractor you select has a good track record of safety and health in their work.
12. Good Understanding
When selecting contractors, one key factor to consider is whether they understand your project requirements for safe working. This includes clearly understanding the risks involved in the project and what measures need to be put in place to mitigate those risks. If a contractor does not understand your project well, it may be worth considering another company.
Health and safety are one of the most important factors to consider when selecting a contractor. By ensuring that the contractor understands health and safety risks and has taken steps to mitigate them, you can help ensure a safe and successful project.
Management and authorization of contractors
The management of contractors is essential since accidents tend to happen more easily when the work of contractors is not properly supervised or the hazards of their job have not been identified and suitable controls introduced. Contractors must be made aware of:
- Contractors need to be aware of the organization’s health and safety procedures and rules. These procedures and rules are in place to protect both the contractor and the organization, and failure to adhere to them could result in serious accidents or injuries.
- Contractors must be made aware of the hazards on your site, especially those associated with the project. One way to do this is by providing a safety briefing or orientation before work begins. This should include an overview of the potential hazards and how to avoid them. Providing ongoing training and updates as new hazards are identified is also a good idea.
- It is important that contractors are made aware of any special or personal protective equipment they need to use on the job site. This could include hard hats, safety glasses, gloves, and steel-toed boots.
- If there is an emergency, the alarm will sound. Contractors should be aware of the emergency procedures and evacuate the building immediately. Do not use the elevators. Go to the nearest exit and follow the signage to safety. If you cannot evacuate, please go to a safe area and await further instructions.
- It is essential that contractors are made aware of the safe disposal of waste. The improper disposal of waste can lead to environmental contamination and health hazards. Therefore, contractors must follow proper procedures when disposing of waste. When in doubt, contractors should consult a professional waste management company to ensure that waste is disposed of safely and complies with regulations.
Good communication and supervision of contractors are essential with a named point of contact from the organization known to the contractors. Regular liaison is important so that the progress of the contract to a satisfactory completion may be monitored.
It is important that the activities of the contractors within the organization of the client are effectively planned and coordinated so there is minimal interference with the normal activities of the organization and the health and safety of its staff is not put at risk. This means that staff should be made aware of the contractor’s activity and any hazards, such as dust and noise.
Contractors, their employees, sub-contractors and their employees should not be allowed to commence work on any client’s site without an authorization signed by the company contact. The authorization should clearly define the range of work that the contractor can carry out and set down any special requirements, for example, protective clothing, fire exits to be left clear, and isolation arrangements.
Permits will be required for operations such as hot work. All contractors should keep a copy of their authorization at the place of work. A second copy of the authorization should be kept at the site and be available for inspection.
The company contact signing the authorization will be responsible for all aspects of the work of the contractor. The contact will need to check as a minimum the following:
- that the correct contractor for the work has been selected;
- that the contractor has made appropriate arrangements for supervision of staff;
- that the contractor has received and signed a copy of the contractor’s safety rules;
- that the contractor is clear about what is required, the limits of the work and any special precautions that need to be taken;
- that the contractor’s personnel are properly qualified for the work to be undertaken.
The company contact should check whether subcontractors will be used. They will also require authorization if deemed acceptable. The company contact will be responsible for ensuring that sub-contractors are properly supervised.
Appropriate supervision will depend on several factors, including the risk associated with the job, the experience of the contractor and the amount of supervision the contractor will provide. The responsibility for ensuring there is proper supervision lies with the person signing the contractor’s authorization.
The company contact will be responsible for ensuring adequate and clear communication between different contractors and company personnel where this is appropriate.
Safety Rules For Contractors
In the conditions of the contract, there should be a stipulation that the contractor and all of their employees adhere to the contractor’s safety rules. Contractors’ safety rules should contain as a minimum the following points:
- Health and safety – that the contractor operates to at least the minimum legal standard and conforms to accepted industry good practice;
- Supervision – that the contractor provides a good standard of supervision of their own employees;
- Sub-contractors – that they may not use subcontractors without prior written agreement from the organization;
- Authorization – that each employee must always carry an authorization card the organization issued while on site.
Example Of Rules For Contractors
Contractors engaged by the organization to carry out work on its premises will:
- familiarise themselves with so much of the organization’s health and safety policy as affects them and will ensure that appropriate parts of the policy are communicated to their employees, and any sub-contractors and employees of subcontractors who will do work on the premises;
- cooperate with the organization in the fulfillment of its health and safety duties to contractors and take the necessary steps to ensure the like cooperation of their employees;
- comply with their legal and moral health, safety and food hygiene duties;
- ensure the carrying out of their work on the organization’s premises in such a manner as not to put either themselves or any other persons on or about the premises at risk;
- ensure that where they wish to avail themselves of the organisation’s first-aid arrangements/facilities while on the premises, written agreement to this effect is obtained prior to first commencement of work on the premises;
- supply a copy of their statement of policy, organisation and arrangements for health and safety written for the purposes of compliance with The Management of Health and Safety at Work Regulations and Section 2(3) of the HSW Act where applicable and requested by the organisation;
- abide by all relevant provisions of the organisation’s safety policy, including compliance with health and safety rules and CDM 2015;
- ensure that on arrival at the premises, they and any other persons who are to do work under the contract report to reception or their designated organisation contact.
Without prejudice to the requirements stated above, contractors, sub-contractors and employees of contractors and sub-contractors will, to the extent that such matters are within their control, ensure:
- The safe handling, storage, and disposal of materials brought onto the premises;
- That the organization is informed of any hazardous substances brought onto the premises and that the relevant parts of the Control of Substances Hazardous to Health Regulations about it are complied with;
- That fire prevention and fire precaution measures are taken in the use of equipment that could cause fires;
- What steps are taken to minimize noise and vibration produced by their equipment and activities;
- That scaffolds, ladders, and other such means of access, where required, are erected and used in accordance with Work at Height Regulations and good working practice;
- That any welding or burning equipment brought onto the premises is in safe operating condition and used in accordance with all safety requirements;
- That any lifting equipment brought onto the premises is adequate for the task and has been properly tested/certified;
- That any plant and equipment brought onto the premises is in safe condition and used/operated by competent persons;
- That for vehicles brought onto the premises, any speed, condition or parking restrictions are observed;
- That compliance is made with the relevant requirements of the Electricity at Work Regulations;
- That connection(s) to the organization’s electricity supply is from a point specified by its management and is by proper connectors and cables;
- That they are familiar with emergency procedures existing on the premises;
- That welfare facility provided by the organization are treated with care and respect;
- That access to restricted parts of the premises is observed and the requirements of food safety legislation are complied with;
- That any major or lost-time accident or dangerous occurrence on the organization’s premises is reported as soon as possible to their site contact;
- That where any doubt exists regarding health and safety requirements, advice is sought from the site contact.
The foregoing requirements do not exempt contractors from their statutory duties in relation to health and safety, but are intended to assist them in attaining a high standard of compliance with those duties.
Contractor Authorization
Contractors, their employees, sub-contractors, and their employees should not be allowed to commence work on any client’s site without authorization signed by the company contact. The authorization should define the range of work that the contractor can carry out and set down any special requirements, for example, protective clothing, fire exits to be left clear, and isolation arrangements.
Permits will be required for operations such as hot work. All contractors should keep a copy of their authorization at work. A second copy of the authorization should be kept at the site and be available for inspection.
The company contact signing the authorization will be responsible for all aspects of the contractor’s work. The contact will need to check as a minimum the following:
- that the correct contractor for the work has been selected; that the contractor has made appropriate arrangements for supervision of staff;
- that the contractor has received and signed for a copy of the contractor’s safety rules;
- that the contractor is clear about what is required, the limits of the work, and any special precautions that need to be taken;
- The contractor’s personnel are properly qualified for the work to be undertaken.
The company contact should check whether subcontractors will be used. They will also require authorization if deemed acceptable. It will be the responsibility of the company contact to ensure that sub-contractors are properly supervised.
Appropriate supervision will depend on a number of factors, including the risk associated with the job, the experience of the contractor, and the amount of supervision the contractor will provide. The responsibility for ensuring proper supervision lies with the person signing the contractor’s authorization.
The company contact will be responsible for ensuring adequate and clear communication between different contractors and company personnel where this is appropriate.
Conclusion
Working with contractors can present a number of risks to an organization. However, these risks can be effectively managed through the use of a clear and robust contractor management system.
Health and safety is important for any organization, but it is especially crucial when working with contractors. A clear and robust contractor management system is essential for mitigating the risks posed by contractors. Byputting in place appropriate policies and procedures, and by ensuring that all personnel involved are properly trained and aware of their responsibilities, organizations can ensure that the risks posed by contractors are effectively minimized.